The Blockchain Transformation

of Manufacturing

2019 AGMA/ABMA Annual Meeting

April 13, 2019 • Scottsdale, AZ

Jack ShawEmerging Technologies Strategist

Speaker, Author, Consultant

The Future of Mobility

Making

predictions is

very hard,

especially

about the

future.

Yogi Berra

Predictions?

• “We don’t sell books!”

• “This notion you’re peddling...”

• Nevertheless…

Breakfast with the Joneses

Jones’ Autonomous Car: “Bitsy”

Replacement Parts

Chang’s Automotive

Chang’s Automotive

Transformational Technologies

World’s Smallest Lithium Ion Battery

400 lb. Bioplastic Cornerstone

for Canal House in Amsterdam

GE’s Printed Jet Fuel Nozzles

One part instead of 18.

5X as durable as regular

one

25% lighter

Runs cooler with

internal cooling

structures

Printing Electronic Devices

3D printed working electronic devices printed with a new type of plastic, called "Carbomorph", that conducts electricity.

Printed a simple computer, a glove containing flexible sensors and a mug that knows how full it is.

Research group leader Dr. Simon LeighUniversity of Warwick, UK

Internet of Things

From Data Analytics to AI

• Descriptive Analytics

– “What Happened?” (Business Intelligence)

• Predictive Analytics

– “What’s Going to Happen”

• Prescriptive Analytics

– “What Needs to be Done?”

Intelligent Agents can improve

performance

2IA’s can leverage

expert knowledge to the rest of

organization –“shifting”

performance curve

1In any organization, best performance –

decisions – is by handful of “experts”

3Further, having IA’s “assist” Experts for

data-intensive thinking can improve

their performance also

Imagine an AI which is so clever that it:

• …Schedules production based on maximum machine performance and least impactful changeovers;

• …Assigns available staff with the greatest efficacy for a particular product;

• … Forecasts and optimizes material inventory;

• …Communicates directly with customers when order is complete, and when it arrives;

• …Coordinates deliveries, with real-time traffic awareness, knows delivery truck locations, and connects directly with the drivers to reroute for efficiency;

• …Predicts product lines’ sales trends that haven’t even been recognized by humans yet, and steers you towards making more of what is selling.

October 31, 2008

at the height of the

global financial crisis…

The First Use Case for Blockchain

= BlockchainBitcoin is an

implementation of the

technology

Blockchain is the

core technology

AMERICAN BLOCKCHAIN COUNCILBlockchains: The Promise

AMERICAN BLOCKCHAIN COUNCILBlockchains Provide

A Permanent, Immutable, Signed, and Time-stamped Record

of Identity, Ownership, Transactions, or Commitments

AMERICAN BLOCKCHAIN COUNCILBlockchains Provide

Records can be shared among two or more Entities – without an intermediary

AMERICAN BLOCKCHAIN COUNCILBlockchains Provide

Globally available with Complete Transparency – for Those Authorized

AMERICAN BLOCKCHAIN COUNCILBlockchains Provide

Unhackable Security against Those Unauthorized

Identical Copies – Distributed Nodes

AMERICAN BLOCKCHAIN COUNCIL

Why Not Electronic Medical Records?

Why Not Land Titles?

Why Not 3D Printing Design Files?

Why Not Purchase Orders?

Supplier Manufacturer Distributor Carrier Retailer

Supply Chain Ecosystem “Leakage” Opportunities

Supplier Manufacturer Distributor Carrier Retailer

Common Data Pool Securely Shared Across Ecosystem via Blockchain

Sharing Data Across Supply Chain

Ecosystem via Blockchain

• “A smart-contract is a computer program, • which runs on a replicated, shared ledger (Blockchain), • which can take custody over assets on that ledger, and • which can track what has happened to date and • respond to incoming information or events.”

Smart Contracts

Port of Qingdao

Blockchain & P.O. Management

Current environment:• Supplier statement reconciliation – company receives supplier statement

& reconciles to what is recorded on company ledger (due to goods in transit, services verification, credit/debit notes, etc.)

Blockchain environment: • All activities recorded; parties instantly see status of reconciliation;

simplifies back-office processes; reduces settlement risk.

• Purchase orders time-stamped; they become valid clauses executed with smart contracts.

• When products or services are delivered, blockchain ensures correspondence to contract (e.g., date and time of arrival; condition; purchase order match).

Self-Sovereign Digital Identity

Blockchain and IoT

Tracking Provenance in Real Time

• Food Safety

• Time to track mangos to source

Traditional: 6 days, 18 hours, and 26 minutes

Blockchain: 2 Seconds

• In the event of an E. coli or salmonella outbreak, the

difference between two seconds and six-plus days can be

decisive, even lifesaving.

• Fraud prevention – granular, real-time records

• Identify & resolve bottlenecks

• Mitigate regulatory & compliance issues, reducing costs of

storage, fines, penalties, fees and interest

Impacts of Blockchain on Supply Chain

• Create A More Transparent Supply Chain

– Enhance sales forecasting and inventory control

– Automated and fully audited

– Rapid and transparent transactions

• Improve Trust And Transparency

– Provenance

• Reduce Counterfeit Goods

– Tilkal

HPE / Continental Blockchain Platform

https://media.now.hpe.com/program.aspx?key=PPPOQKFHLG

Blockchain Hits the Road

• Blockchain for vehicle data.

• BMW, General Motors, Ford and Renault founded MOBI (Mobility Open Blockchain Initiative) –to make mobility safer, greener, and more accessible.

• Toyota: blockchain for secure information between cars and road networks.

• General Motors: filed patent for blockchain to manage autonomous vehicle data.

• “Emerging blockchain technology has the potential to underpin a new liability framework for autonomous vehicles as it provides trustless consensus,” A Blockchain Based Liability Attribution Framework for Autonomous Vehicles.

Bill Gates

The Rate of

Change

“We always overestimate

the change that will

occur in the next two

years and underestimate

the change that will

occur in the next ten.

Don’t let yourself be

lulled into inaction.”

But NONE of this matters

Unless you have a

strategy for

blockchain

transformation

Digital Transformation

• Digital Transformation is NOT about force fitting new technologies into your existing business.

• It’s about reimagining your business model and even your entire business ecosystem.

• Don’t use technology to make your current model marginally more efficient.

• Understand how new technologies affect working processes.

• Then use any and all technologies needed to implement the new vision.

The Critical Role of Blockchain

in Digital Transformation

• Most Emerging Technologies are Point Solutions

– 3D Printing

– Augmented / Virtual Reality

– IoT

– Even AI

• They apply at a specific organizational or even geographic points.

• Blockchain is different.

• It provides the decentralized Infrastructural Glue that ties all of the points together.

• It enables the Digital Transformation of not just individual processes or organizations, but entire business and/or social ecosystems

Most Common Hurdles to Blockchain Adoption

Digital Transformation Timeline

• Awareness – Communication

• Understanding – Education

• Strategy – Planning

• Implementation

– Proof of Concepts

– Growth Across Enterprise

– Expansion across Ecosystem(s)

Change &

Progress

“Change does not

necessarily assure

progress,

but progress

implacably

requires change.”

Historian Henry Steele Commager

Follow Up

@jackshaw

Jack Shaw

M: +1-770-910-5969

JShaw@AmericanBlockchainCouncil.org

Blockchain Executive LinkedIn Group